from uncertainty to panic, investors react to wall street's worse day since black monday on track to the worse week since the financial crisis disney, gap and more warning on the growing impact of the coronavirus on future business it is friday, march 13, 2020 "worldwide exchange" begins right now.

>> good morning, i'm courtney reagan live from the nasdaq marketsite in times square futures look to erase at least part of yesterday's very massive loss right now, futures are indicated higher by 443 points, s&p by 53 and nasdaq by 173 points it was a rocky session over the past 12 hours. the dow futures well off session lows indicated higher by 556 points the dow plunging more than 2,300 points down 10% the worst day since black monday of october 1987 when it fell

the dow and s&p 500 are on track for the worse week since 2008. a sea of red in asia but now green across the board in europe the ftse 100 higher by 2%. mat taylor is live in singapore and steve sedgwick in london >> it was a rough session for the asian markets. they were well and truly off the lows a number of markets turning back bear market turn around in hong kong still around by about 1% trade was halted amid steep falls. up 3.4% for the week down some 13%.

japan was the biggest decliner around about 10% at one point. no money going into the relative safety of the japanese yen we continue to see the yen weaken still a 6.1% close the biggest loss since june of 2016 in bear market territory as well interesting moves particularly in india circuit trading halted in india. this is the picture now. up by 2% we have seen a 12% bounce back same thing for australia rallying and ending up by some 4.4% so big swings. back to you. >> thank you for breaking that down for us.

let's go over to steve sedgwick. >> courtney, as matt was saying, truly historic moves a great graphic on cnbc.com that puts these moves in the same bracket as we saw in 1929 and 1987 as well the phrase dead cat is coming up these are the major european forces we do have substantial moves to the upside you have big numbers state side as well. the ftse 100 yesterday fell 10.87% it is down for the week. the italian market, which as we now is the epicenter of our coronavirus crisis the ftse mib week to date is

down 28.39%. staggering figures there huge, huge declines. going back to the date of 1987, these are the biggest moves we have ever seen trying to rally but again 1% isn't that much. let's take a look at what we are trying to see. around about an hour ago, every single one of these sectors -- i'll get out of the way, every single one of these was rallying once again, travel aleisure is getting hit. >> yesterday's dramatic move marked the end of the historic bull run which began march 9,

2009 after the financial crisis. it took 16 trading days to move from a record high to where we are this morning joining me now from london, senior investment strategist, daniel morris. thank you for being here this is quite an interesting market to say the least right now, we are indicated higher nothing fundamentally changed to make that higher if you are an investor, what do you make of what is going on here and what is to come >> what will happen over the

next three months or six months and is what we need to be thinking about in terms of explaining why things were such a problem yesterday, it does go back to the ecb and the ability of central banks to help come out of a recession that said, to look at the declines we have had relative to the impact because of the virus, it does seem proportionate it does seem constructive and we look to buy the dips it seemed to reassure the markets. in your opinion, is there more that the fed or other central banks should be doing? is this not the crisis to solve and perhaps some dramatic tax cuts there would that help?

do we need that? >> in the short term, i think so >> we've had calls over the policy since at least christine lagarde took over. in the short term, absolutely appropriate and necessary when you have a short-term hit like we have had. it is the role for government support to step in and offset that otherwise, you have the risk of a deeper session over the longer term, particularly in the eurozone is a problem. we do want to see governments stepping up and taking into account what kind of support will be taken over the individuals. providing liquidity overseeing companies that would see a short-term squeeze later on. >> we'll have a lot of viewers tuning in through out the day

and around the world trying to understand what they should do i think everyone understands there is a lot of uncertainty. we don't know what will happen from the monetary side any further than we already know if you are looking for your portfolio or managing overs, what is your advice? >> it depends on the individual and the risk tolerance and what they had allocated we have gone through markets like this in the past and what will happen and we think is happening as you do see opportunities coming up. at the minimum, you will see where the markets have overcome. where do you think there is a chance to buy an asset that isovis overreactive so a slightly more optimistic

end game when you see all the red on the screen. >> when we come back, more fallout from the coronavirus as the growing list of companies brace for the worse. a bold new call from goldman sach ahead of next week's fed decision and looking at the drag in terms of the dollar point impact boeing, number one, taking 720 points off the dow this week alone. goldman sach, apple also taking a heavy toll especially by something like your cloud. it's a problem. but the ibm cloud is different. it's the most open and secure public cloud for business. it can manage all your apps and data from anywhere. so it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. without getting in your way.

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at least six states will close all schools affecting millions all public schools and private schools in oregon, michigan, ohio told to close the white house continues to try and seek a deal on a virus relief package >> one lawmaker who will not be on the hill is lindsay graham. he's self-quarantining himself after a trip to mar-a-lago disney is pushing back the

release of the live-action film mu mulan. the company will close disney land and disney world until the end of the month gap halts share plan amid fourth quarter results. saying it expects to take a hit of at least $100 million in europe and asia in the fourth quarter. back to markets here we are indicated higher. three big banks indicate for the estimates amid the globe al

pandemic saying at worse, the u.s. will see back-to-back declines in q2 and q3 jp morgan now expecting negative 2% following a negative 3% the biggest calls coming from goldman sack saying it expects the fed to cut key interest rates all at once rather than split it up over the next two months joining me now thank you for being here with us some pretty big calls from pretty big banks what is your best cased scenario for what is likely to happen >> i think you are likely going to see wide ranges for how the

u.s. will react. we have further understanding about the spread of the virus. the general consensus is that it will be a short recession and that the virus should peek around april or the summer beyond that, then you'll see further lower forecasts. there is still optimism that this virus will have historic event like past outbreaks. i think you you are going to see a short recession here >> how much damage gets done should you sit on the sidelines or put your money to work? >> now is the time you might want to consider scaling in. we take a look at some past

moves. yesterday, we were at 30% off the highs of the s&p 500 you are probably going to see continued aggression action. there is now hope you are going to see strong fiscal responses in the u.s., germany and all over the world that will provide an overall larger punch bowl. i think you are probably going to see the risks remain to the down side. if we retest the 2019 goals, ultimately, you are probably going to see 30% decline, 35, 40

before you see more passive investors get into this. for the active investors, you will see them trade headline to headline there is morris being. now that we are starting to see more countries impose bans which means you'll see more get hit harder that probably means it will be a fourth or fifth week >> we've fallen far because we have started relatively high thank you for joining us this morning. >> still on deck, we go live to beijing to hear more about the war on words and in italy, the death toll continues to rise.

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welcome back the outbreak in italy continues to put companies and hospitals

in that country under stress officials in china push back on president trump's characterization of covid-19 as a, quote, foreign virus. >> the coronavirus outbreak shows no sign of slowing down. yesterday, the death toll hit the threshold of 1,000 2,000 more tested positive we are starting to see the real effects of the outbreak and the lockdown rules on italy's economy. yesterday, the stock market dropped by 17% this is not just a test on the house system or the economy. it is a test of the nerves of the italians while most here in rome -- you

can see the biggest square in rome there is barely anybody. this shows how italians are taking this seriously and staying at home. elsewhere, some are already losing their nerves. i'm talking about the tons of workers in factories on thursday crossed their arms in protest to keep factories open and keep can them in business saying they are being used as sacraficial lambs by the government. let's go to eunice for more on the growing tensions between the u.s. and china >> it is tense

china is accusing the u.s. of a coverup. saying, please tell us how many are related to covid-19. sources are saying the source of the virus may be from the u.s. others saying when did patient zero come from the u.s.? they respond saying it could be the u.s. army. the international community has different views on the origin of the virus. we first saw it pop up in a state media report when global times wrote that the chinese

feared the flu season could be the source of the coronavirus. a top epidemiologist has been quoting and since then, chinese officials have been repeating that the virus is not made in china. they may be trying to deflect the blame of a global pandemic of the chinese in china, people are buying into the narrative and saying, the chinese themselves believe that origin was in wuhan. >> a lot of finger pointing. i think we need to focus on getting everyone healthy thank you. strong words from former presidenti presidential candidate elizabeth warren over the white house tax relief plan.

>> putting more money into the pocke pockets of people who already have money does not help >> dow futures point to a higher open look at today's winners. boeing up, exxon mobil up and coca-cola up we are back after this introducing a single sports destination,

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following the worst session since black monday as the senate puts vacation plans on hold so lawmakers can try to reach a deal the pga becoming the latest major sports operation to pause play over the outbreak we have global team coverage the second half of "worldwide exchange" starts right now >> welcome back. i'm courtney reagan live we begin with stock futures looking to erase at least part of yesterday's massive losses. right now, the dow jones is indicated higher by 601 points, the s&p by 70 and the nasdaq by

211. let's look at the dow futures. the action does come off the historic day on the markets. the dow down 10% since the worst day of black monday in 1987 when it fell 22%. major averages now in bear market territory, the dow and s&p are on track eyeing the worst week since 2001 in the wake of the dot com bubble >> a number of circuit breakers as trade gets under way right now in europe. matt taylor is in singapore.

at cnbc headquarters tracking troubles facing airline stocks the chief investment officer tracking now matt, let's get started with you. >> a rough session for asian markets. they are well and truly closing off the session as we saw u.s. futures tip back in. still a number of markets fall into bear territory. ending down. the taiwan market, the south korean market we saw circuit breakers there the market ending down 3% or 4%. we saw circuit breakers trigger there. you can see here around 3.4% the japanese market was the worst performer of the day

we continue to see a weakening now and some big moves 105.98 is where we are sitting tokyo down more than 10% at one point. down 6.1%. the biggest loss since june 2016 now to a november 2016 low looking at australia, we were down by 8% at one point. a rally into the close as you can see here, making big reversals to end up by more than 4% courtney, back to you. >> of course, australia had that very deep sell off let's get over to steve for early trade in europe. >> these are historic moves if you look behind me and we pan

out, you will see a little more green than you saw a few minutes ago. we have picked up a little momentum it is interesting to see when the fed moved and the ecb moved, no positive move from the market they are up 2.4% in terms of the individual indices, let's get straight to lower for today's session in the italian market the ftse has had an absolute dropping the brexit low was around 5,800. we are now up 3% oil majors having a little rally. courtney, back to you.

>> back home more than 99% of the s&p stocks are trading in direction of 89% in bear market down more than 20% from recent highs. turning to jeff mills and the beaten down names. many are afraid that the worst may be yet to come as far as the outbreak and the numbers is now the time to take a little risk on or do we need to wait longer until more is known 12 >> the truth of the matter is you never know where the bottom of an event like this is no one range a bell at the bottom the headlines weren't that good. i can remember speaking with folks, one, two, three years in the past the question is where is the bottom at this points. if you have cash and youer

looking to get into the market the old saying, buy low, sell high buy low and when it really hurts, buy more. you will never be able to buy perfectly. you can try to look at putting money into the market acknowledging that the market could still go lower the market now is digesting the idea with the travel bans, the probability for a recession is probably higher now than it has been where the price is at current credit points would predict at about 12.5 times. somewhere in that range, environments of dramatic stress

that would be consistent of 11.5 times trying to understand where the bottom could be. we are seeing yields move higher today. that is not necessarily to introduce the interest rates really what you saw yesterday and the day before was this risk

off moment but you still had banks rising the demand wasn't there. to have the fed step in, you saw the market react in reality that would step in for the market they producted the first market impact there was enough liquidity there to backstop the treasury markets. we are watching closely. any disruption there in the liquid market. it is worth watching >> it is especially as we get to 0.9% jeff, stay there with us as the

bull markets come to a halt, it is hard for investors to ignore boeing a year ago, the faa called for the global grounding this year alone, the stock boeing h boeing has shaved nearly 1,600 off the markets. going to leslie back at headquarters as well >> it is hard to believe it was a year ago at this time the government was grounding planes. they thought it would last a few weeks or months. those planes are on the ground after those two deadly crashes the airlines were worried they wouldn't have enough planes. those maxes coming back. with the coronavirus, it is not clear they are even going to need them. >> it doesn't sound like they

are having a good start to the year we got this big downgrade from jpmorgan >> they've reported more cancellations than orders in february that was helping to send the stock down and the dow before travel restrictions went into effect investors can expect more pain here they are hiring and limiting overtime this is all a bid to shore up the cash in the down turn with companies too. >> indicated higher and talking about the fall i want to bring you into the conversation here. what do you make of boeing and the dow. is this an area you would look to buy because it operates here and perhaps there is support because of the way the business

model shakes out because of global stocks? >> i think ultimately, that's probably true. you've shaved $20 billion of stock the last couple of days. now as we've talked about you are seeing some of the leasing companies switch from more 737s to less. by base case is that the dividend is cut. as i said before, ultimately with how punished the stock has been, it is a stock i thought i

would never see again. >> for as much action as we did see, it did bump along while we have you, i'd love to get your take on the airline industry as a whole. these stocks have been hammered. look at some of these names. united down 25%, yesterday, delta off 21%. american down 17%, jetblue down 15%. what can you tell us >> airlines are really at the forefront of the crisis. fears about spreading the disease through travel has led to a host of restrictions. president trump announced the banning that starts today. banning foreigners from coming up to the u.s. for the big u.s.

three, this is especially painful. the trans-atlantic flying accounts for 10% of their revenue. getting to summer months, that's when airlines make their money >> pretty incredible we have seenstocks go higher a the moment obviously beaten down more broadly. as travelers continue to pull back, restrictions remain in place. is this really a place you need to put money to work or do you need to wait longer? >> this is tough clearly the epicenter of the problem. if you look at the operators you have american, you have others american, with 40% debt to assets i would look towards delta

they've been a leader. they are paying a 4% dividend. you can look to some of these names who may be better positioned watching the stocks move in a dramatic way the question is, is this fully temporary. i think of this travel i look at this as a forced technology test where we can still conduct meetings by zoom and others and we are cost cutting. does this fundamentally change the way corporations move employees around it is something worth considering for the longer term. >> it is interesting i was thinking about how hard it might be to be productive because we are distracted by the

bigger headlines and impact to public health. thank you both for being with us tune in to our special coverage of what is another fast-moving day. tune in at 7:00 p.m. on cnbc the u.s. putting one health company ttohe test over fast tracked screening. more when we return. i wake up every morning to see how much weight i've lost and how much better i look. myww join for free and save 30%!

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the number of coronavirus cases in the u.s. have surpassed 1,600 as the death toll climbs to 41. communities in new york city announce new restrictions or large events we go to frank holland >> the fda has issued an emergency use of testing kits made by roche. aimed at increasing virus screening to try to contain this outbreak shares of roche rising on the news broadcom guidance says the outbreak is creating

uncertainty. the pga is the latest to cancel events. this weekend's player's championship in florida will not be played. following moves by nba and delaying the season of the mlb >> lawmakers in the senate will be sticking around a bit longer after mitch mcconnell announced they were delaying their reverse. handing out a massive coronavirus aid package. something elizabeth warren was criticizing. >> it disproportionately goes to people with more money we all know in a crisis, when you are trying to boost the economy, putting more money into the pockets into the hands of

people with money does not increase the number of pizzas they are buying. we'll go now to capitol hill what can you tell us about this? >> it does feel like they are getting closer to a deal lawmakers signaling signs of progress not clear where that president's signature will go. that payroll tax cut seems to be something of a dead letter pushing to get priorities on this bill. the president has been talking this week about the idea of a national disaster declaration. something in consideration the president has appeared reluctant to move forward on such a sweeping effort here is the president being asked if he's going to move forward with the declaration

under the stafford act >> if i need to do something, do it at some point, maybe more minor things at this point >> courtney, you get a sense there. the way he phrases that, if i have to do something, i will do it this is a president reluctant to go into a full crisis mode right now. right now, that is something he could have done this week. hasn't done it he has scheduled today to meet with industry executives at the white house. they haven't told us which executives will be coming. more coming today at the white house. >> when he says i can do things, minor things what does that mean? if he's not ready to make major

standpoints or major moves here? >> i ask white house aids that question all afternoon we don't have a clearance to it. my guess is that there are pieces of the stafford act and if i amma that apply to unemployment if people are getting sick and not returning to work, that would be one of the pieces that would apply here remember, the president promised a plan he has not rolled that out yet offering backup to various industries and sectors he has not indicated which industry he will do that for this is very much a work in progress >> thank you for being with us this morning continuing with the hard work.

we count on your updates checking u.s. futures and see how things are going we are implied to see the dow jones up to the tune of 665 points the s&p up 78 points global sebt ral banks it in to take action to try to counter the impact of the coronavirus as well norway moving today cutting its key interest rate. that follows the fed which injected more cash into the system yesterday to help keep it going. the fed and others have to do more tepper saying the fed should launch targeted measures such as buying mortgages and treasuries to relieve some of the stress.

going to our guest with more. >> getting the bones, the plumbing, the infrastructure of the market moving. there has been major dynamic in terms of extending collateral. that is good for part one. i do think the question of qe4 or is it qe5 it pumped a lot of liquidity into the markets we've heard less from the fed at a time than we might have in the past or so it seems. the fed have been very transparent for the market.

we saw the news and market reaction the problem is not of the fed's doing. >> right this is a health care issue getting into the dynamics that is a liquidity base the fed has encouraged the building with a lot of liquidity taken back. we need a fiscal response. we need a health care response

and coordinated action the sense that policymakers are responding to markets on just the lifestyle approach people's lives are quickly changing as that begins to settle in, i know those are the kinds of things that are disturbing the policymakers and the health care approach. >> it is friday, we've had a very turbulent week. waking up and you are an investor, what are you advising people to do >> the velocity of this move is so extraordinary, even compared to the financial crisis in september/october. one of the things that had to happen here is that a lot of

traders, folks putting the balance sheet have tried to simplify all assets have sold off gold, that tells you where the leverage of the system was at some point, you get to the place where you see a company like disney. this is one of the great companies in the world these are days i didn't think i would ever see you have to make your list and there are great stocks on sale >> thank you it is shaping up to be another big day in the markets futures are going into the open. we are indicated for a higher start to the day the dow jones indicated higher by 733 points.

that's it for "worldwide exchange" this morning thank you for being with us. pi uawk box" will ckp coverage after this.

good morning futures pointing to a rebound. major averages remain firmly in bear market territory. >> we are seeing a sharp ramp up in efforts to try to contain the coronavirus. march madness canceled, broadway goes dark, theme parks closed. we'll dig in to some of the biggest movers

boeing alone is responsible for wiping 1,100 points off the dow this year. it is friday, march 13, 2020 "squawk box" begins right now. >> good morning. welcome to "squawk box" on cnbc. i'm becky quick. joe and andrew are live from times square yesterday's dramatic move marked the end of the historic bull run. it took this time just 16 trading days for the s&p to move to a record high the fastest move ever into a bear market. it got there in rip roaring fashion. we are